A Housing Sector Divided

Home builders won't have a single reaction to fiscal debate in Washington. Here's a trade that can play on those differences.

While the nation waits to see if Congress will compromise to avert the so-called fiscal cliff, some investors are starting to make specific stock investments in anticipation a deal will not be reached.

In the housing sector, Toll Brothers (ticker: TOL), which builds homes for a wealthy clientele, and D.R. Horton (DHI), which builds homes for a less exclusive clientele, are emerging as ways to trade in the absence of a deal.